Real-Time Information: Pay as You Earn (PAYE)

The Payment of Employment Taxes Act (PAYE) requires employers to submit payroll data to HMRC electronically every month. This is called “real time information” or RTI. Employers must use one of three methods to submit payroll data to PAYE. These are:

1. Directly to HM Revenue & Customs (HMRC).

2. By electronic transfer to HMRC.

3. By paper form.

Full Payment Submission (FPS)

The Employment Insurance Act allows employers to make a full payment submission (FPS) to the Canada Revenue Agency (CRA). This enables employers to pay employment insurance premiums for employees working outside Canada up to 12 months in advance. In addition, the CRA provides employers with flexibility to amend FPS payments. Employers must provide notice to the CRA within 30 days of making changes to FPS payments.

Starters

are now being called “Employees”

The government has announced changes to how employers will record employees’ starting dates. From April 2020, employers will no longer need to submit a form P45 (part 3) to HMRC. Instead, employers will be required to provide basic information about starters in an FPS (Form P45 Starter Information). This includes name, address, National Insurance number, occupation, salary, and whether the employee is self-employed.

This change follows the introduction of the Employment Start Date Regulations, which came into force in January 2018. These regulations require employers to display the employment start date on applications for new starters. They also state that the employment start date cannot be changed once it has been published.

As part of the implementation of the regulations, employers will be required under the FPS to keep starter data for three years. This will include the same information as the form P45, plus the following additional details:

• Name

• Address

• National Insurance Number

• Occupation

Leavers

– What happens to you if you resign/leave your job via FPS?

Employees who leave via FPS will NOT receive a P45 if they are no longer employed by the employer within 31st March 2019. If you resign or leave your position without giving notice, you will not receive a P46 form. This does not mean that you cannot claim benefits such as Statutory Sick Pay and maternity pay etc. You still need to complete the relevant forms and send it off to HMRC.

If you leave your job via FPS, employers must keep records of employees’ date of resignation/departure. These records should include the following information – Employee ID number, reason for leaving, start and end date of employment, and whether the employee had been given written warning about his/her performance.

The employer must provide the above information to HM Revenue & Customs (HMRC).

You should note that an employer is required to give you a P45 form if you resign or leave your job via FPS. However, there is no requirement for an employer to give you a P46 form if you resign or depart via FPS.

Death of a pension recipient or employee

A few months ago we reported about how Social Security Administration (SSA) had added a deceased indicator to the online Death Master File (DMF). At the time, SSA stated that it did not plan on adding a deceased indicator to the DMF because it believed employers could already access the information via the Employee Online Services System (EOS). However, now the SSA has reversed course and plans to add the deceased indicator to the DMFs.

The change will affect both current and future employees and beneficiaries. If you are employed by a federal agency, state government, school district, college or university, tribal organization, local government, religious institution, charitable foundation, or nonprofit corporation, you will be able to use the deceased indicator. You will also be able to use the indicator if you are receiving benefits from a government program such as Medicaid, Medicare, Supplemental Security Income (SSI), Temporary Assistance for Needy Families (TANF), Veterans Affairs, Railroad Retirement Board, or Workers’ Compensation.

If you are a beneficiary, you will be able use the deceased indicator if you received benefits from one of those programs listed above. In addition, if you receive retirement, disability, survivor, or annuity payments from a government agency, state government, or school district, you will be able add the deceased indicator.

In addition, if you are a veteran, you will be able make changes to your Veteran Identification Number (VIN) using the deceased indicator. For example, if you are a World War II veteran, you will be allowed to update your VIN to reflect your status as a deceased veteran. This change will allow veterans to obtain additional benefits based upon their service.

For more information, please contact our Customer Service Center at 1-800-772-1213 (toll-free) or TTY1-866-653-4387.

Employer Payment Summary Submission (EPS)

An Employer Payment Summary (EPS) is a document required under PAYE that provides information about how much tax you pay and how much tax you owe HM Revenue & Customs (HMRC). This helps HMRC to calculate what amounts need to be paid back to employers.

To calculate the amount that needs paying back, HMRC looks a total amount of deductions taken by employees and compare it against the total amount of deduction allowed by law.

The EPS includes deductions that cannot claim back. These are known unrecouped deductions.

No payment due

doesn’t mean “no payment received.”

Employers must file an Employment Payroll Statement (EPS) every month regardless of whether they make any payroll payments. And an EPS is filed for each paycheck, even if there are no payments made. So what happens if you receive no payment? Do you still file an EPS? Yes, you do.

The answer depends on how your state defines an employer. Some states require an EPS to be filed within 30 days of receiving no payment. Other states say it must be filed within 60 days. Still others say it must be filed 90 days after the end of the pay period.

In fact, some states don’t allow employers to claim that no payment was received because they didn’t know about it. They require the employer to report the lack of payment immediately upon discovery.

So if you receive no payment, make sure you send out an email to employees letting them know that you did not receive any money for their work. Then follow up with a letter explaining why you did not receive any funds. You might want to include copies of canceled checks and invoices showing the amount owed.

If you don’t hear anything back from employees, contact your state labor department. If you aren’t satisfied with the response, consider filing a complaint with the federal Equal Employment Opportunity Commission.

Experimental Statistics status

These are experimental statistics which are currently in an early stage of testing. They are not yet completely developed or mature enough to be considered generally usable. As such, there may be some minor changes to the data prior to publication. We encourage you to provide feedback about the usefulness and usability of these statistics.

Strengths of the data

The Office for National Statistics (ONS) has announced it will release real-time gross value added (GVA) data for the period April 2018 to March 2019. This is the latest step towards making the ONS’s quarterly Labour Market Review (LMR), published every month, more timely and useful.

This data will provide information on employment growth, job vacancies, pay rates and hours worked across sectors and occupations. It will help businesses understand what skills are needed in the economy and where there are shortages.

The LMR is based on monthly surveys of employers and employees, asking questions such as: How many people did you employ during the reference week? What were the average weekly earnings of those employed?

The GVA measures the output generated by each sector of the British economy. It reflects the total income earned by workers and companies within a particular sector over a given period. For example, if a firm produces £100 worth of goods and services, it will receive £100 of revenue. If the same firm hires 10 additional workers, it will earn £1,000 per worker (£10 x 10). Therefore, the GVA of the firm is £1,000.

The ONS says the data will be released in real time, allowing researchers to make comparisons between different months and regions.

Imputation and revisions

The IRS publishes tax returns every year. They publish a summary of what everyone owes each month. Then, later, they release the full report. If you’ve filed, you’ll see some numbers change. And if you haven’t filed, you might find out you owe money.

This is called “imputing.” When we do that, we make sure we know what the person owes. We figure out what they owe based on how much they reported paying last year. So if they didn’t file, we assume they didn’t pay anything.

Then, if the taxpayer files again, we revise the number. Maybe they did pay something last year. Or maybe they didn’t. Either way, we update our records.

Revisions are similar. But they happen before the data is published. For example, let’s say you owe $5,000. You decide to pay off half of it. Then, you file. Now, we can tell you owe $2,500.

But wait, there’s more!

If you owe $5,001, you still owe $1,501. Why? Because we know you already paid off $3,500.

So now we have four different ways to look up your tax bill.

Seasonal adjustment

The seasonal adjustment method assumes that the seasonal pattern will remain broadly constant over time, and it adjusts the data accordingly. This assumption is generally correct, but sometimes the pattern changes. In those cases, volatility in the seasonally adjusted series reflects the fact the seasonal pattern has changed.

Frequently Asked Questions

What is RTI FPS submission

RTI stands for Real Time Inventory Submission. In short, this means that you have to submit your inventory data (grower name, location, product type, etc.) at the same time you sell your products. You don’t want to wait until after you’ve sold your product before submitting your information. If you do not submit your information right away, then you risk losing out on sales.

The good news is that we’ve built our system to make it super easy for you to get started. All you need to do is enter your grower number, and you’ll automatically receive a confirmation email once you’re ready to start selling!

If you already have an account with us, just log in using your Growers Club username and password. Otherwise, if you haven’t yet created an account, click here to create one now.

Once you’re logged in, you’ll notice that there’s a button below the search bar labeled ‘Submit’. Clicking this will take you to the RTI page where you can add your grower info. Once you’re done adding your grower info, you’ll be able to view your inventory and begin selling immediately.

How do I submit RTI to HMRC?

HM Revenue & Customs (HMRC) is responsible for collecting taxes in the UK. Taxes they collect go towards funding the UK government and its services.

HMRC’s role changes depending on what tax you pay; some taxes they collect change how much you earn, while others affect the goods and services you use.